MGX Minerals Files Maiden N.I. 43-101 Resource Estimate for Driftwood Creek Magnesium; Commences Preliminary Economic Assessment

VANCOUVER, Sept. 27, 2016 /CNW/ - MGX Minerals Inc. ("MGX" or the "Company") (CSE: XMG / FKT: 1MG / OTC: MGXMF) reports the Company has filed on SEDAR a National Instrument (N.I.) 43-101 technical report (the "Report") for its Driftwood Creek magnesium project ("Driftwood Creek"). The Report includes a maiden N.I. 43-101 compliant mineral resource estimate for Driftwood Creek.

The Company has commenced work on a N.I. 43-101 compliant Preliminary Economic Assessment ("PEA") for Driftwood Creek and expects completion before the end of 2016. The PEA is being prepared by AKF Mining Services Inc.

Highlights

  • Measured plus Indicated (M+I) mineral resource totaling 8.028 million tonnes grading 43.31% magnesium oxide (MgO)
  • Inferred mineral resource totaling 846,000 tonnes grading 43.20% MgO
  • Bulk of resource is located less than 100 meters from surface
  • Opportunities to expand mineral resource along strike and at depth with additional drilling








Class

Tonnes x 1000

MgO%

Al2O3%

CaO%

Fe2O3%

SiO2%

LOI%

Measured

2,828

43.34

1.08

0.90

1.39

5.19

47.16

Indicated

5,200

43.29

1.17

0.80

1.35

6.17

46.40

M + I

8,028

43.31

1.14

0.84

1.36

5.82

46.67









Inferred

846

43.20

1.30

0.47

0.51

6.87

45.09

 

Notes:

  1. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all, or any part of the Mineral Resources estimated will be converted into Mineral Reserves.
  2. The LG constrained shell economics used a mining costs of US$6.25, processing costs of US$129.41/tonne and a commodity price of US$400.00/tonne 95%MgO DBM.
  3. Mineral resources are reported within the constrained shell, using a cut-off grade of 42.5% MgO (based on 40 years) to determine 'reasonable prospects for eventual economic extraction'.
  4. Tonnages are reported to the nearest 1,000 tonnes, and grades are rounded to the nearest two decimal places.
  5. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal.

The resource estimate was prepared in accordance with Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Standards on Mineral Resources and Mineral Reserves as adopted by the CIM Council.

Qualified Person
This press release was prepared under the supervision and review of Andris Kikauka, P. Geo. and Vice President of Exploration for MGX Minerals. Mr. Kikauka is a non-independent Qualified Person within the meaning of National Instrument (N.I.) 43-101 Standards.

About MGX Minerals
MGX Minerals (CSE: XMG) is a diversified Canadian mining company engaged in the development of large-scale industrial mineral portfolios in western Canada.

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements
This press release contains forward-looking information or forward-looking statements including the completion of the rights offering (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "potentially" and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to the Company's public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the Company's profile on SEDAR at www.sedar.com.

SOURCE MGX Minerals Inc.

Image with caption: "MGX Minerals Inc. (CNW Group/MGX Minerals Inc.)". Image available at: http://photos.newswire.ca/images/download/20160927_C8444_PHOTO_EN_782399.jpg

For further information: Jared Lazerson, Chief Executive Officer, Telephone: 1.604.681.7735, Email: jared@mgxminerals.com

RELATED LINKS
www.mgxminerals.com

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